If the Cross-Price Elasticity of Two Goods Is 0

question 16

Multiple Choice

If the cross-price elasticity of two goods is 0.25,then we know that these goods are:

• A) substitutes because their cross-price elasticity is greater than zero.
• B) complements because their cross-price elasticity is less than 1.
• C) substitutes because their cross-price elasticity is less than 1.
• D) complements because their cross-price elasticity is greater than zero.

---

Definitions:

Supply Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

Financial Management

The planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization or individual.

HR Management

HR Management (Human Resources Management) involves the strategic approach to the effective management of people in an organization, focusing on policies and systems to maximize employee performance.

Operations Management

The administration of business practices to create the highest level of efficiency possible within an organization, focusing on converting materials and labor into goods and services.